Fox Factory Holding Corp. reported fourth‑quarter 2025 results on February 26, 2026, with consolidated revenue of $361.1 million, up 2.3% from the same quarter last year. Adjusted earnings per share were $0.20, missing the consensus estimate of $0.21 but beating the FactSet estimate of $0.15. The company posted a net loss of $287.0 million, largely driven by a $295.2 million non‑cash goodwill impairment charge that was recorded to reflect a sustained decline in the company’s market value.
Revenue growth was supported by a 12.5% increase in Aftermarket Applications Group sales and a 0.4% rise in Powered Vehicles Group sales, while Specialty Sports Group sales fell 5.0% year‑over‑year. The mix shift toward higher‑margin segments helped offset the impact of tariffs and raw‑material cost inflation, but the overall gross margin contracted to 28.3% from 28.9% in Q4 2024, reflecting the mix shift and tariff exposure.
The EPS miss can be traced to the goodwill impairment and the margin compression. The $295.2 million charge reduced earnings, and the 0.6‑percentage‑point drop in gross margin eroded profitability. Despite the loss, the company’s operating cash flow remained positive, and the management team highlighted that the Phase 1 profit‑optimization plan delivered roughly $25 million in cost savings during 2025.
For fiscal 2026, Fox Factory guided to net sales of $1.328 billion to $1.416 billion, implying a year‑over‑year decline of about 6.5% at the midpoint. Adjusted EBITDA is projected at $174 million to $203 million, a margin improvement of roughly 200 basis points over 2025. The guidance reflects expectations of continued product‑line rationalization, divestitures, and a slightly down market, while the company plans to realize an additional $40 million in savings under Phase 2 of its profit‑optimization plan.
"Fiscal 2025 was a year of both challenges and meaningful progress for Fox Factory. Despite ongoing headwinds across our end markets, we delivered consolidated revenue growth while successfully executing our Phase 1 profit optimization plan, which yielded approximately $25 million in realized cost savings for the year and helped us mitigate the full effect of tariffs during the year," said CEO Mike Dennison. "Total consolidated net sales in the fourth quarter of fiscal 2025 were $361.1 million, an increase of 2.3% versus the same quarter last year. Gross margin was 28.3% for the fourth quarter of fiscal 2025, compared to 28.9% in the fourth quarter last year, with the decrease primarily driven by shifts in our product line mix and impact of tariffs," added CFO Dennis Schemm. "For fiscal 2026, Fox guided to net sales of $1.328 billion to $1.416 billion, which Schemm said implies a year‑over‑year decline of about 6.5% at the midpoint, largely due to divestitures, product line rationalization, and a slightly down market."
"The market reacted by a 3.31% decline in aftermarket trading following the earnings release, reflecting concerns over the EPS miss, the sizable goodwill impairment, and the cautious revenue outlook for 2026."
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